| Article ID: | iaor19941670 |
| Country: | Netherlands |
| Volume: | 57 |
| Issue: | 1 |
| Start Page Number: | 13 |
| End Page Number: | 23 |
| Publication Date: | Feb 1992 |
| Journal: | European Journal of Operational Research |
| Authors: | Martikainen Teppo, Kanto Antti J. |
The empirical validity of the traditional a priori classification pattern of financial ratios presented by B. Lev is tested using confirmatory factor analysis on listed Finnish firms in the period 1974-1986. The financial ratio categories presented are highly correlated with each other and the empirical applicability of the a priori classification pattern is poor.